SET-listed Bangkok Insurance (BKI) has set aside 1 billion baht for its investment in Thai shares this year, with a focus on banking stocks that are projected to yield higher returns than last year as interest rates rise, says chairman Chai Sophonpanich.
"We will buy stocks we sold last year, such as BBL [Bangkok Bank], BLA [Bangkok Life Assurance] and BDMS [Bangkok Dusit Medical Services], as we presently hold more than 10% of BDMS shares. We will invest around 500 million baht in BBL and BLA," said Mr Chai.
He said he expects BKI to return to profitability from the first quarter, with estimated earnings before interest, taxes, depreciation and amortisation of 3.5 billion baht for the entire year.
In 2022, the company reported a net loss of 638 million baht, roughly a loss of 6 baht per share, compared with a net profit of 1.06 billion baht (9.92 per share) a year earlier, partly attributed to higher Covid-19 claims, according to its filing to the Stock Exchange of Thailand late last month.
Mr Chai said BKI aims to increase its gross written premiums (GWP) by 12.5% this year to 30 billion baht. GWP this year include 16.9 billion baht from non-motor insurance premiums and 13 billion from motor insurance, with the latter growing 20% from last year, he said.
Of the GWP from motor insurance, about 120-140 million baht is expected from the electric vehicle (EV) segment, said Mr Chai.
Chief executive Apisit Anantanatarat said EVs are becoming a trend, with registrations in Thailand last year totalling 9,729 units, an increase of 403% from 2021.
"In addition to increasing environmental awareness, high oil prices are also nudging more consumers to electric cars," said Mr Apisit.
This year BKI will focus on offering products that provide more inclusive coverage to address changing consumer lifestyles, including a new package for mental healthcare in the pipeline.
"The non-life insurance business will benefit from new car sales, which are expected to grow for the second year in a row," he said.